[gajie]

This is the first ACCA paper I’ve done where I felt that my knowledge and its application were being tested and not my ability to write legibly at high speed!
I feel more optimistic about passing future papers now.

[gajie]

$1.62 per share to be paid after 1 yr.
So had to do present value using 8%.

[gajie]

All Multiple Choice. 30 questions, in 2 sections. Just like the specimen paper.
Less time wasting to write legibly at high speed.

[gajie]

the MCQ union strike question asks for profit maximising use of available labour. Although the shortage is temporary, it still creates a bottleneck. So using contribution per labour hour, D then A.

[gajie]

On relevant costing question:
– factory o/h costs are listed separate to Admin o/h costs, and are allocated to labour hrs. So assumed factory costs to be variable (electricity, eqpt maintenance etc) and included $1.50 per labour hour. Also included super’s OT but not the 1.50 per hour for his regular pay which is a sunk cost.
– the wood is in continuing use but there isn’t enough to do the extra order as well as regular production in the time frame given for the order. They’re short by 30 sq m so they have to buy that at the immediate price of 8.50. The other 20 sq m will be replenished in their regular order.
– fabric is at replacement cost
– skilled labour 50 hrs at OT rates, 150 hrs sunk cost
– semi-skilled labour at the agency rate of $14/hr rather than OT rate of $16/hr for reg employees (lower rate is relevant unless there is some reason given that they must use their own employees, like union agreement)
– gen admin costs assumed budgeted for regular production and not relevant

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